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Indian food legal transfer app Zomato has raised $ 1 billion from institutional investor , nail its first major fundraise since its 2021 IPO .
The nutrient pitch and speedy - Commerce Department giant issue approximately 336.5 million share priced at ₹ 252.62 each ( $ 3 ) in a dependent institutional placement , according to a stock interchange filing on Friday .
The fundraise saw strong involution from lead Amerind common funds . Motilal Oswal emerged as the largest investor , with its family of funds picking up 20.81 % of the shares issue . ICICI Prudential ’s funds secured 12.78 % , while HDFC and Kotak stock get 8.68 % and 5.95 % , respectively .
The $ 1 billion fundraise strategically shift Zomato ’s condition to a “ domestic ” company by push its extraneous ownership below 50 % . This would allow its agile - commerce unit , Blinkit , to adopt an armory - led model ( currently restrain to domestic firms ) , enable verbatim control over product and warehousing .
The timing of the capital raise is also strategic , coming just weeks after rivalSwiggy ’s $ 1.35 billion IPOearlier this calendar month . Zepto , another leading prompt - commerce inauguration , secure $ 350 millionthis calendar month in a mint broker by Motilal Oswal .
part of Swiggy were down 4.1 % on Friday , crest this hebdomad ’s overall rally to 12.8 % . Shares of Zomato , offered to investors participating in the ploughshare emplacement at a 5 % discount , were down just about 1 % on Friday , but remain up 127.7 % year - to - appointment . Zomato has a grocery store cap of about $ 30 billion .
Zomato ’s carbon monoxide - founder and CEO Deepinder Goyal last calendar month said the firm , which already had $ 1.3 billion in cash reserves , was raising the additional funds tomaintain free-enterprise parity .
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The fellowship , which recently report its 2d sequential quarterly profit , leads India ’s quick - commerce grocery store with Blinkit , competing against well - funded rivals like Swiggy , Zepto , and BigBasket in a sector figure to generate over $ 6.5 billion in annual range - rate revenues .
“ We see the ready - commerce industry going through a stage of increased challenger in the next 6 - 12 months . Incumbents in fast - commerce are appear to or have already raised capital . Four new names include Flipkart , Reliance , BigBasket & Amazon are look to come in the warm - commerce blank space , ” Bank of America analyst wrote in a annotation to client .
“ In this outer space , first mover advantage matter , and given the TAM is c. 30 mn households ( 330 mn households in India ) , we conceive it is logical for the market leader Zomato to want to maintain its leading c. 40 % share . ”
